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The Kenya Forum | Geothermal Development Corp. corruption case in KSh344 million contract - The Kenya Forum

December 29, 2022

Summary

Tekno International Limited was not in the list of pre-qualified suppliers for the financial year 2013-2015 and thus was ineligible for award of the tender.

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Geothermal Development Corp. corruption case in KSh344 million contract

Geothermal Development Corp. corruption case in KSh344 million contract

Inquiry into Allegations of Procurement Irregularities against the Officials of the Geothermal Development Corporation (GDC) in the Award of Tender for Design, Supply and Commissioning of an Information Management System.

GDC awarded a 344 million shilling contract

The Ethics and Anti-Corruption Commission (EACC) commenced investigation after receiving an allegation of procurement irregularities by Geothermal Development Company officials in the award of a tender for the design, installation and commissioning of an Information Management System (EMS) awarded to Tekno International Limited at a sum of KSh344,523,712.

Investigations established that ten (10) companies were invited to bid through restricted tendering.

Tekno International Limited

The Evaluation Committee recommended the award to Tekno International Limited, which was approved by the Tender Committee. However, it was established that Tekno International Limited was not in the list of pre-qualified suppliers for the financial year 2013-2015 and thus was ineligible for award of the tender.

Investigations revealed that Tekno International Limited did not supply the IMS as per the contract’s specifications and that the parts of what was delivered was not functional hence the company was in breach of contractual obligations.

EACC Recommends Charges

On 28th September, 2022, a report by the EACC was compiled and forwarded to the DPP with recommendations to charge jointly or severally the Managing Director, Members of the Tender and the Evaluation Committees, Directors of Tekno International Limited with the following offences:

• One count of conspiracy to commit an offence of corruption contrary to section 47(A) (3);

• One count of engaging in procurement without prior planning contrary to section 45 (c) and
three counts of wilful failure to comply with the law ‘Maintaining to procurement contrary to section 45(2) (b) as read with Section 48 of the Anti-Corruption and Economic Crimes Act, 2003;

• Three counts of abuse of office contrary to section 46 and one count of fraudulent acquisition of public property contrary to section 45 (1a);

• One count of dealing with suspect property contrary to section 47 as read with section 48(1) of the Anti-Corruption and Economic Crime Act, 2003;

• One count of fraudulent practice in procurement proceeding contrary to section 41(4) as read with section 137 of the Public Procurement and Disposal Act no. 3 of ‘2005;

• One count of Uttering false document contrary to section 353 as read with section 349 of the Penal Code.

The Commission awaits the response from the DPP.

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